As posted by: Wall Street JournalWalt Disney Co. said it will form a joint venture with a Russian broadcaster to offer a Disney-branded television channel on 30 stations throughout Russia, marking a major foray into the country's media market.
The entertainment conglomerate based in Burbank, Calif., will form a subsidiary, which will hold a 49% stake in the venture with Russian broadcaster Media-One Holdings Ltd. Disney will invest cash and provide content to Media-One, which will allow the company to expand viewership of its popular U.S. franchises -- such as "Hannah Montana" and "High School Musical" -- as well as locally produced shows.
The channel is slated to launch sometime next year, pending Russian regulatory approval, according to Disney officials. The move is a significant push into Russia, a market that many Western entertainment companies are hoping to tap.
In the last year, Disney struck licensing deals with two of Russia's biggest broadcasters to air various content, including movies and popular Disney television shows. But until now it hasn't had a dedicated channel for its content in Russia. Disney has also launched Disney Cruises and Luxury Cruises.
Disney this year has created a Russian version of its Web site, begun a stage version of "Beauty and the Beast" and started production of its first Russian-language film, scheduled for release in Russia next fall. Disney's blockbuster films, including the "Pirates of the Caribbean" franchise, have also fared well theatrically in Russia. Next year, Disney's cruise line will also dock in St. Petersburg.
"Russia is an extremely important market for Disney and this new Disney channel is a great way for us to expand our brand and business," Disney Chief Executive Robert Iger said in a statement.
However, Disney's expansion coincides with a sharp slump in what had been a booming Russian economy. Doing business in Russia -- particularly in media -- can be treacherous because of an unpredictable political and economic climate.
But Mr. Iger has made international expansion a focus of Disney's strategy. The company is increasing its presence in India and negotiating with Chinese officials for a possible theme park in Shanghai and a potential expansion of its existing Hong Kong theme park.
